SpaceX employees and early investors are facing their first real opportunity to sell shares, though a sharp decline in the stock price will significantly limit their gains.
The company’s first lockup expiration is scheduled for August 6, 2026, unlocking roughly 911.5 million shares held by insiders for trading on the open market.
SpaceX’s approach to the lockup release is notably unconventional, with banks staggering share releases over nearly a year to manage the potential flood of supply.
An additional 12.9 billion shares are set to become eligible for sale by the middle of next year, creating prolonged selling pressure that investors will need to navigate carefully.
Shares fell approximately 8.5% on Wednesday despite the company reporting a stronger-than-expected 92% jump in second-quarter revenue, a result that would typically lift a stock.
CEO Bret Johnsen stated during the earnings call that SpaceX remains on track to record annualized revenue of $100 billion by the end of the year, yet the stock continued to slide.
The stock has now dropped 49% from its June high, when shares debuted at an IPO price of $135, dramatically narrowing the profit window for sellers entering the market now.
Analysts suggest the selloff “seems more sentiment driven, as media reports are that many insiders will look to sell on the strong results this week as their shares become fully vested.”
Despite the decline, many insiders who acquired their stakes well below the $135 IPO price can still lock in substantial gains even at current depressed valuations.
One wealth planner who contacted SpaceX insiders and employees directly found that none appeared eager to sell, describing them as “long-term believers in SpaceX” with little urgency to exit.
When more than three times a company’s stock float potentially enters the market simultaneously, basic supply and demand dynamics work heavily against existing shareholders.
The coming months represent only the beginning of what could be an extended period of elevated selling pressure as additional tranches of insider shares become eligible for trading.
